CNH Industrial Soars with Starlink: Precision Agriculture’s Satellite Revolution

CNH Industrial (NYSE: CNH) is making a bold bet on the future of farming by teaming up with Starlink to conquer one of agriculture’s greatest challenges: connectivity. This partnership, announced May 15, 2025, isn’t just about faster Wi-Fi in cornfields—it’s a strategic move to transform CNH from a traditional equipment manufacturer into a leader of high-margin ag tech services. Let’s unpack why this could supercharge earnings and why investors should act now.

Breaking the Connectivity Ceiling

Rural areas in Brazil, Argentina, and other key markets have long grappled with patchy internet access, stifling the adoption of precision agriculture tools. CNH’s FieldOps™ platform—already a powerhouse for machine coordination and data analytics—now gains a critical edge via Starlink’s global satellite network. This integration ensures farmers in remote regions can access:
- Real-Time Prescription Spraying: AI-driven drone images are processed instantly, creating precise spraying maps to combat weeds before they damage crops.
- Continuous Data Streaming: Uninterrupted connectivity keeps farm management systems operational, enabling data-driven decisions on planting, irrigation, and harvest timing.

The result? Higher yields, lower costs, and a competitive advantage for CNH’s customers—and a new revenue stream for CNH itself.

The Financial Case: Strong Fundamentals + Analyst Optimism

CNH’s $18.85 billion in 2024 revenue already positions it as an industry giant, but the Starlink deal accelerates its shift toward recurring digital service revenue. Analysts at Citi and Northland see this as a game-changer:
- Citi: Raised price target to $14.00, citing the partnership’s role in unlocking “untapped precision ag markets.”
- Northland: Upgraded CNH to “Outperform” with a $18.00 target, calling the Starlink tie-up a “strategic coup” for emerging markets.

CNH’s financial fortress further supports this pivot:
- Liquidity: A €3.25 billion credit facility extended to 2030 and a robust current ratio of 5.08.
- Scalability: The Starlink deal’s marginal costs are dwarfed by the potential to expand margins on digital services, which carry far higher profitability than hardware sales.

Why Brazil Is the Tipping Point

Brazil’s vast farms—many in areas with no cell towers—are ground zero for CNH’s Starlink strategy. By enabling real-time data transfer, CNH’s FieldXplorer platform can now deliver prescription maps in minutes instead of days, slashing herbicide waste and boosting crop yields. This isn’t just incremental—it’s a paradigm shift for a market that represents over 20% of CNH’s agricultural sales.

From Tractor Seller to Tech Leader

CNH’s vision is clear: dominate the $18.9 billion precision agriculture market by 2028. The Starlink deal isn’t just about selling tractors; it’s about selling a subscription-based ecosystem of connectivity, data analytics, and autonomous farming tools. Consider the numbers:
- Revenue Mix Shift: Digital services could grow from 10% to 20% of total revenue by 2027.
- EBITDA Upside: Analysts project a 15% EBITDA margin expansion in emerging markets as Starlink-enabled services reduce operational inefficiencies.

Risks, but Manageable

Skeptics point to startup costs for farmers and potential satellite signal disruptions. But CNH’s partnerships with banks and governments to subsidize equipment loans mitigate upfront costs, while Starlink’s proven reliability in extreme conditions (think drought-stricken Brazil or snow-blanketed Russia) addresses technical risks.

Bottom Line: Buy Before Q2 Earnings

CNH’s Q2 results, due in July 2025, will likely showcase early wins from the Starlink rollout. With analysts’ price targets averaging $17.60—vs. current $14.50—and the stock trading near its 52-week low, now is the time to position. This isn’t just a tech upgrade; it’s a structural shift that turns CNH into the Amazon of ag tech.

Rating: Buy
Price Target: $18.00
Key Catalyst: Q2 earnings, Brazil market adoption data, and Starlink integration milestones.

The next decade of agriculture will be won by those who control the data. CNH just handed itself the keys.